Ola, Ather, TVS & Vida under scanner for subsidy misuse

Ola Electric, Ather Energy, TVS Motor and Vida are being probed for allegedly mispricing their electric 2-wheelers.

According to a media report, four electric 2-wheeler manufacturers are under the scanner for false subsidy claims worth Rs 300 crore.

Ola Electric, Ather Energy, TVS Motor and Vida are being probed for allegedly mispricing their electric 2-wheelers to make them eligible for subsidy under the Faster Adoption & Manufacturing of Electric Vehicles (FAME) scheme. It is said that the manufacturers kept the prices of their products low to claim subsidy. This was done by billing parts such as the charger and proprietary software separately. Ola has denied any wrongdoing.

Under the government’s FAME scheme, manufacturers cannot claim subsidy on electric 2-wheelers that cost more than Rs 1.50 lakh (ex-showroom). Brands can offer a discount of up to 40% on locally manufactured EVs and claim it as a subsidy.

The government is also investigating a few other electric 2-wheeler manufacturers for failing to meet localization commitments. The probe will be conducted by the ARAI.

Source: ET Auto